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Create a Balance Sheet with this Trial Balance:
Debits
Credits
Cash
$713.083
Inventory
$1.500
Prepaid Rent
$11.000
Prepaid Insurance
$8.000
Cost Goods Sold
$78.500
Accounts Receivable
$60.000
Equipment
$300.000
Rent Expense
$1.000
Interest Expense
$417
Salary Expense
$30.000
Depreciation Expense
$36,000
Utility Expense
$1,500
Accumulated Depreciation
$36.000
Sales Revenue
$120.000
Account Payable
Notes Payable
$50.000
Deferred Renvenue
$5.000
Commcn Stock
$1_000.000
Total
$1.241,000
$1.241.000
What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $32,000 the previous year, prepare the appropriate journal entry to record income taxes this year.
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